A SLEW of dour data has compounded the UK’s economic woes – as Chancellor George Osborne admitted the recovery will be “choppy”.

After Mr Osborne said the growth forecast for the economy would be downgraded in a speech to Lloyd’s of London, it emerged yesterday that there was a further fall in house prices across the UK, with the Halifax’s monthly survey showing a drop of 1.2%.

And in the retail sector, there are more signs that stagnant consumer spending is hampering the recovery on the high street – with more than a quarter of shops lying empty in some parts of Wales.

After a summer of poor data in the housing sector, there was more grim news yesterday with the average price of a house falling month-on-month to £161,743 in August, according to Halifax – although the “more reliable” quarterly change showed a 1% rise.

Martin Ellis, housing economist at Halifax, said prices and activity in the market should be stable over the coming months.

The findings are in line with fellow lender Nationwide, which saw prices drop 0.6% in August, but reassured the decline did not change a “relatively stable” picture.

In Wales, Agency Express – the for sale signs company – pointed to a slowdown in activity in the market in Wales, with a decrease of 2.4% in the number of properties sold in Wales in August compared to the month before, according to its monthly report.

Stephen Watson, managing director of Agency Express, said: “With growing concerns and pessimism over the health of the UK property market, it’s disappointing to see the August data for Wales supporting these fears, but there is a positive year-on-year growth signal.

“Our August Index is also further evidence of the laws of demand and supply in that properties in good condition that are realistically priced, will sell.

“In addition to the shortage of properties on the market, I believe there is still considerable work to be done by the mortgage lenders in terms of creativity with their mortgages that will help overcome the issue of unaffordable deposits for first time buyers.”

Howard Archer, UK and European economist at IHS Global Insight, said the figures reinforced the belief that house prices would come down over the coming months.

The fall in prices comes as activity in the housing market remains low.

While the Bank of England reported that mortgage approvals for house purchases rose modestly to a 14-month high of 49,239 in July, this was still substantially below a monthly average of around 90,000 since 1993.

The main support for house prices will come from the fact that interest rates are likely to remain very low for some time, analysts added.

Nicholas Ayre, a director of UK buying agents Home Fusion, said a double-dip recession was becoming more realistic and if the economy goes down, the property market will go down with it.

He said: “The low interest rate environment, competitive mortgage finance and the low supply of housing are providing a degree of support to prices, but there is no guarantee they will withstand the weight of economic collapse.”

Mr Osborne has been adamant his deficit reduction plan is the right path for the Government to follow – despite growing calls from a growing number of economists that some measured capital spending and investment is needed to encourage growth.

He said: “We warned repeatedly that the recovery would be choppy.

“And we set in train a plan that was comprehensive and clear in its vision, but also flexible enough to withstand shocks along the way.

“A plan for fiscal responsibility to bring unsustainable government borrowing under control, so that monetary activism can allow interest rates to stay lower for longer.

“The plan that we have set out is designed in tough times for tough times.

“It is the rock of stability upon which any sustainable recovery depends and we will hold to it.”

Signalling that UK growth forecasts will be lowered when he delivers his autumn statement to Parliament on November 29, the Chancellor said recovery from financial crises were “slower and choppier” than other recessions.

“So, while we have all had to revise down our short-term expectations over recent weeks, the only people who should be fundamentally re-examining their view of the world are those who thought that this time was different,” he said.

“Those whose plans depended on unrealistic assumptions of a rapid return to business as usual and a continuation of forgiving financial market conditions.

“This Government has never thought that this time would be different.

“We understood right from the beginning that the world of the boom years had changed beyond recognition.”

Mr Osborne said Britain was benefiting from being “ahead of the curve” in dealing with the deficit.

But figures out today show the current economic climate is badly affecting the high street – with a warning that there are still “significant corrections” ahead in the sector.

In some parts of the UK, as many as one in three shops are empty – and there is unlikely to be a significant improvement because of the current economic climate, said the Local Data company.

The research group’s study of 1,000 towns and cities found that the three-fold increase in vacancy rates since 2007 had stopped, but some retail centres had one in three shops closed, while others remained at pre-recession levels.

In Wales, there is a vacancy rate of just less than 15%, behind only the north east and north west of England among UK nations and regions.

Newport has the highest shop vacancy rate in Wales, at 26%, although that is an improvement of nearly 3% on the 2010 figure.

Matthew Hopkinson, director at the Local Data Company, said: “This report shows how fragile the British high street is in parts of the country.

“The pressures it faces are increasing and therefore one needs to be realistic in one’s approach to each and everyone of these towns if they are all to have a future.

“The stark reality is that Great Britain has too many shops in the wrong locations and of the wrong size. The diversity of shop vacancy rates is clear evidence that a local approach is required that ties in with consumer needs and the realities of modern retailing.

“The market still has significant corrections ahead and the impact of these will vary significantly according to location.”

Liz Peace, chief executive of the British Property Federation, said: “Many of the high streets and town centres are in a critical, but stable condition.

“Their recovery is not just going to happen, but will need nursing.

“It will require investment from our sector, and the confidence that goes with a local authority that has leadership, a clear vision, and a willingness to plan and manage their retail environment.

“We must also accept that some secondary retail units are no longer viable and plan their transition to other uses. Simply hurting successful retailing to level the playing field is not the solution. We must find new ways to get people on to our high streets and in our local shops.”